The islands and other districts within the Arctic circle became a portion of the Dominion only in 1880, when all British possessions in North America, excepting Newfoundland, with its dependency, the Labrador coast, and the Bermuda islands, were annexed to Canada. West of the province of Ontario, then inaccurately defined, the provinces of Manitoba and British Columbia were the only organized divisions of the western territory, but in 1882 the provisional districts of Assiniboia, Athabasca, Alberta and Saskatchewan were formed, leaving the remainder of the north-west as unorganized territories, a certain portion of the north-east, called Keewatin, having previously been placed under the lieutenant-governor of Manitoba. In 1905 these four districts were formed into the two provinces of Alberta and Saskatchewan, and Keewatin was placed directly under the federal government. In 1898, owing to the influx of miners, the Yukon territory was constituted and granted a limited measure of self-government. The unorganized territories are sparsely inhabited by Indians, the people of the Hudson’s Bay Company’s posts and a few missionaries.
Population.—The growth of population is shown by the following figures:—1871, 3,485,761; 1881, 4,324,810; 1891, 4,833,239; 1901, 5,371,315. Since 1901 the increase has been more rapid, and in 1905 alone 144,621 emigrants entered Canada, of whom about two-fifths were from Great Britain and one-third from the United States.
The density of population is greatest in Prince Edward Island, where it is 51.6 to the sq. m.; in Nova Scotia it is 22.3; New Brunswick, 11.8; Ontario, 9.9; Manitoba, 4.9; Quebec, 4.8; Saskatchewan, 1.01; Alberta, 0.72; British Columbia, 0.4; the Dominion, 1.8. This is not an indication of the density in settled parts; as in Quebec, Ontario and the western provinces there are large unpopulated districts, the area of which enters into the calculation. The population is composed mainly of English- or French-speaking people, but there are German settlements of some extent in Ontario, and of late years there has been a large immigration into the western provinces and territories from other parts of Europe, including Russians, Galicians, Polish and Russian Jews, and Scandinavians. These foreign elements have been assimilated more slowly than in the United States, but the process is being hastened by the growth of a national consciousness. English, Irish and Scots and their descendants form the bulk of the population of Ontario, French-Canadians of Quebec, Scots of Nova Scotia, the Irish of a large proportion of New Brunswick. In the other provinces the latter race tends to confine itself to the cities. Manitoba is largely peopled from Ontario, together with a decreasing number of half-breeds—i.e. children of white fathers (chiefly French or Scottish) and Indian mothers—who originally formed the bulk of its inhabitants. Alberta and Saskatchewan, particularly the ranching districts, are chiefly peopled by English immigrants, though since 1900 there has also been a large influx from the United States. British Columbia contains a mixed population, of which in the mining districts a large proportion is American. Since 1871 a great change has taken place throughout the west, i.e. from Lake Superior to the Pacific. Then Manitoba was principally inhabited by English and French half-breeds (or Métis), descendants of Hudson’s Bay Company’s employes, or adventurous pioneers from Quebec, together with Scottish settlers, descendants of those brought out by Lord Selkirk (q.v.), some English army pensioners and others, and the van of the immigration that shortly followed from Ontario. Beyond Manitoba buffalo were still running on the plains, and British Columbia having lost its mining population of 1859 and 1860 was largely inhabited by Indians, its white population which centred in the city of Victoria being principally English.
French is the language of the province of Quebec, though English is much spoken in the cities; both languages are officially recognized in that province, and in the federal courts and parliament. Elsewhere, English is exclusively used, save by the newly-arrived foreigners. The male sex is slightly the more numerous in all the provinces except Quebec, the greatest discrepancy existing in British Columbia.
The birth-rate is high, especially in Quebec, where families of twelve to twenty are not infrequent, but is decreasing in Ontario. In spite of the growth of manufactures since 1878, there are few large cities, and the proportion of the urban population to the rural is small. Herein it differs noticeably from Australia. Between 1891 and 1901 the number of farmers in Ontario, Quebec and the Maritime provinces decreased, and there seemed a prospect of the country being divided into a manufacturing east and an agricultural west, but latterly large tracts in northern Ontario and Quebec have proved suitable for cultivation and are being opened up.
Religion.—There is no established church in Canada, but in the province of Quebec certain rights have been allowed to the Roman Catholic church ever since the British conquest. In that province about 87% of the population belongs to this church, which is strong in the others also, embracing over two-fifths of the population of the Dominion. The Protestants have shown a tendency to subdivision, and many curious and ephemeral sects have sprung up; of late years, however, the various sections of Presbyterians, Methodists and Baptists have united, and a working alliance has been formed between Presbyterians, Methodists and Congregationalists. The Methodists are the strongest, and in Ontario form over 30% of the population. Next come the Presbyterians, the backbone of the maritime provinces. The Church of England is strong in the cities, especially Toronto. Save among the Indians, active disbelief in Christianity is practically non-existent, and even among them 90% are nominally Christian.
Indians.—The Indian population numbers over 100,000 and has slightly increased since 1881. Except in British Columbia and the unorganized territories, nearly all of these are on reservations, where they are under government supervision, receiving an annuity in money and a certain amount of provisions; and where, by means of industrial schools and other methods, civilized habits are slowly superseding their former mode of life. British Columbia has about 25,000, most of whom are along the coast, though one of the important tribes, the Shuswaps, is in the interior. An almost equal number are found in the three prairie provinces. Those of Ontario, numbering about 20,000, are more civilized than those of the west, many of them being good farmers. In all the provinces they are under the control of the federal government which acts as their trustee, investing the money which they derive chiefly from the sale of lands and timber, and making a large annual appropriation for the payment of their annuities, schools and other expenses. While unable to alienate their reservations, save to the federal government, they are not confined to them, but wander at pleasure. As they progress towards a settled mode of life, they are given the franchise; this process is especially far advanced in Ontario. A certain number are found in all the provinces. They make incomparable guides for fishing, hunting and surveying parties, on which they will cheerfully undergo the greatest hardships, though tending to shrink from regular employment in cities or on farms.
Orientals.—The Chinese and Japanese numbered in 1906 about 20,000, of whom, three-quarters were in British Columbia, though they were spreading through the other provinces, chiefly as laundrymen. They are as a rule frugal, industrious and law-abiding, and are feared rather for their virtues than for their vices. Since 1885 a tax has been imposed on all Chinese entering Canada, and in 1903 this was raised to £100 ($500). British Columbia endeavoured in 1905 to lay a similar restriction on the Japanese, but the act was disallowed by the federal legislature.
Finance.—Since 1871 the decimal system of coinage, corresponding to that of the United States, has been the only one employed. One dollar is divided into one hundred cents (£1 = $4.862⁄3). The money in circulation consists of a limited number of notes issued by the federal government, and the notes of the chartered banks, together with gold, silver and copper coin. Previous to 1906 this coin was minted in England, but in that year a branch of the royal mint was established at Ottawa. Though the whole financial system rests on the maintenance of the gold standard, gold coin plays a much smaller part in daily business than in England, France or Germany. United States’ notes and silver are usually received at par; those of other nations are subject to a varying rate of exchange.
The banking system, which retains many features of the Scotch system, on which it was originally modelled, combines security for the note-holders and depositors with prompt increase and diminution of the circulation in accordance with the varying conditions of trade. This is especially important in a country where the large wheat crop renders an additional quantity of money necessary on very short notice during the autumn and winter. There has been no successful attempt to introduce the “wild cat” banking, which had such disastrous effects in the early days of the western states. Since federation no chartered bank has been compelled to liquidate without paying its note-holders in full. The larger banks are chartered by the federal government; in the smaller towns a number of private banks remain, but their importance is small, owing to the great facilities given to the chartered banks by the branch system. In 1906 there were 34 chartered banks, of which the branches had grown from 619 in 1900 to 1565 in 1906, and the number since then has rapidly increased. The banks are required by law to furnish to the finance minister detailed monthly statements which are published in the official gazette. Once in every ten years the banking act is revised and weaknesses amended. Clearing-houses have been established in the chief commercial centres. In October 1906 the chartered banks had an aggregate paid-up capital of over $94,000,000 with a note circulation of $83,000,000 and deposits of over $553,000,000.